Investors are obviously disappointed with Apple's (NASDAQ:AAPL) earnings release. iPhone unit sales missed the mark while revenue guidance also fell short of expectations. However, there is one silver lining that investors can take comfort in: gross margin. Over the past year, gross margin has been a particular cause for concern among investors, but profitability is definitely stabilizing.

Last quarter, Apple put up a 37.9% gross margin, a sequential increase of approximately 90 basis points. Apple already took a hit upfront with deferrals related to free software. After all is said and done, Apple still puts up enviable gross margins for a consumer electronics company. Even if Apple never gets back to its mouthwatering 47% level previously seen, it's hard to complain about 38% gross margins.

In the following video, Evan Niu discusses Apple's gross margins last quarter with Ashraf Eassa.